Correlation Between Xinxiang Chemical and Dezhan HealthCare
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinxiang Chemical Fiber and Dezhan HealthCare Co, you can compare the effects of market volatilities on Xinxiang Chemical and Dezhan HealthCare and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Xinxiang Chemical with a short position of Dezhan HealthCare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinxiang Chemical and Dezhan HealthCare.
Diversification Opportunities for Xinxiang Chemical and Dezhan HealthCare
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinxiang and Dezhan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Xinxiang Chemical Fiber and Dezhan HealthCare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dezhan HealthCare and Xinxiang Chemical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Xinxiang Chemical Fiber are associated (or correlated) with Dezhan HealthCare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dezhan HealthCare has no effect on the direction of Xinxiang Chemical i.e., Xinxiang Chemical and Dezhan HealthCare go up and down completely randomly.
Pair Corralation between Xinxiang Chemical and Dezhan HealthCare
Assuming the 90 days trading horizon Xinxiang Chemical Fiber is expected to under-perform the Dezhan HealthCare. But the stock apears to be less risky and, when comparing its historical volatility, Xinxiang Chemical Fiber is 1.32 times less risky than Dezhan HealthCare. The stock trades about -0.26 of its potential returns per unit of risk. The Dezhan HealthCare Co is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 382.00 in Dezhan HealthCare Co on October 12, 2024 and sell it today you would lose (69.00) from holding Dezhan HealthCare Co or give up 18.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Xinxiang Chemical Fiber vs. Dezhan HealthCare Co
Performance |
Timeline |
Xinxiang Chemical Fiber |
Dezhan HealthCare |
Xinxiang Chemical and Dezhan HealthCare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinxiang Chemical and Dezhan HealthCare
The main advantage of trading using opposite Xinxiang Chemical and Dezhan HealthCare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinxiang Chemical position performs unexpectedly, Dezhan HealthCare can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dezhan HealthCare will offset losses from the drop in Dezhan HealthCare's long position.Xinxiang Chemical vs. Threes Company Media | Xinxiang Chemical vs. Hengdian Entertainment Co | Xinxiang Chemical vs. China Publishing Media | Xinxiang Chemical vs. Yingde Greatchem Chemicals |
Dezhan HealthCare vs. Shandong Polymer Biochemicals | Dezhan HealthCare vs. Xinxiang Chemical Fiber | Dezhan HealthCare vs. Dymatic Chemicals | Dezhan HealthCare vs. Maoming Petro Chemical Shihua |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |